LINK’s winning streak continues. The token which is now ranked as the sixth-biggest by market capitalization has registered a near-constant upsurge over the past couple of weeks.
Following this meteoric rise, LINK’s trading volume has surpassed that of the benchmark cryptocurrency on major cryptocurrency exchanges.
LINK’s Trading Volume Outruns That Of Bitcoin
LINK has continued to blow everyone’s mind. On August 9, the price of the crypto skyrocketed to a new all-time high of $14.35. LINK is now up 63% in the past week alone and a whopping 680% on a year-to-date basis.
Adding fuel to the LINK rally is the trading volume that is going through the roof. For the first time ever yesterday, LINK’s trading volume overtook that of bitcoin (BTC) on Binance exchange.
In addition, LINK also became the most traded cryptocurrency on Coinbase Pro with a volume of approximately $160 million while BTC’s volume stood at just $95 million. To put LINK’s unstoppable rally into perspective, it’s believed that Zeus Capital’s $20 million short was completely liquidated as the asset broke above $13.
Why Is LINK On Top?
LINK’s exponential growth is linked to the decentralized finance (DeFi) craze that seems to be gaining steam every day. The crypto asset is benefitting greatly from the increased use of Chainlink’s price oracles in the blossoming DeFi market.
DeFi hopes to revolutionize certain aspects of traditional finance by leveraging blockchain technology. In recent weeks, DeFi has attracted a lot of hype as investors look to make handsome returns via yield farming.
As expected, the total value locked in DeFi contracts has continued to increase and now stands at $4.74 billion, according to DeFi Pulse — after crossing the $4 billion mark a little over a week ago.
How Much Further Can LINK Go?
Chainlink (LINK) is undeniably one of the best performing cryptocurrencies this year so far. While some may view this kind of euphoria as a bubble that is bound to pop, others believe LINK still has plenty of room to grow. After eclipsing $14, one analyst has posited that the “next logical target” for LINK is $20.
CFA Manager at Cane Island Alternative Advisors, Timothy Peterson has noted that LINK has the potential to run to $32 by the end of the year. However, Peterson believes such a high price level would not be sustainable. His exact words were:
“Did some quick analysis of #chainlink’s network growth rate and historical deviations in price put $LINK at $32 by end of year, but that price would not be sustainable. Investors who buy at high levels risk losing 50% of their investment or more. Most growth priced in already.”
Overall, LINK beating BTC in terms of the trading volume indicates that traders are transferring their capital from bitcoin to the overwhelmingly bullish altcoins that could outshine the king of crypto in the near-term.
While LINK’s 24-hour trading volume has passed that of BTC, it should be noted that the asset’s global trading volume is still far below BTC’s aggregate global volume.